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Four Corners (FCPT) on Buying Spree, Acquires Illinois Asset
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Four Corners Property Trust (FCPT - Free Report) recently acquired a portfolio of three properties in a strong retail corridor in Illinois for $11.5 million. The properties are leased to Aspen Dental, Addus Homecare, AT&T, WellNow and Banfield Pet Hospital. The move is in sync with the company’s portfolio-expansion efforts, with real estate leased to strong credit operators.
The tenants are corporate-operated under triple net leases with a weighted average of five years of term remaining. Priced at a 6.8% cap rate on rent as of the closing date and excluding transaction costs, the buyout seems a strategic fit for FCPT. The portfolio is likely to generate steady revenues over the long term.
Of late, this real estate investment trust (REIT), mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has been on an acquisition spree.
In December, FCPT shelled out $6.9 million for the acquisition of a Red Lobster property and a Smokey Bones property positioned in a highly trafficked corridor in New York. The properties are corporate-operated under triple net leases with a weighted average of 2.5 years of the residual term. The transaction was priced at a 6.5% cap rate, excluding transaction costs.
In the same month, it closed the acquisition of a four-property Buffalo Wild Wings portfolio for $14.3 million. Being situated in strong retail corridors in Illinois, the properties are under individual long-term, triple net leases, each with roughly nine years of the residual term.
In addition to the above-mentioned buyouts, earlier in December, Four Corners acquired a WellNow Urgent Care property in Michigan for $2.4 million and five Jiffy Lube properties in Indiana for $7.9 million. Further, it took over a Gerber Collision & Glass property in Texas for $2.8 million.
Notably, in the nine months that ended Sep 30, 2022, FCPT acquired 70 properties for $171.8 million, including transaction costs. These properties are 100% occupied under net leases with a weighted average remaining lease term of 7.5 years.
Further, as part of its capital-recycling efforts, FCPT announced the disposition of a Red Lobster property in Ohio for $4.9 million in December. The company plans to redeploy the proceeds into new investment prospects in sync with its thresholds.
Four Corners currently carries a Zacks Rank #4 (Sell).
However, analysts seem bullish on the company as the Zacks Consensus Estimate for its 2022 funds from operations (FFO) has moved marginally upward over the past week. Its shares have gained 7% in the quarter-to-date period, outperforming the real estate market’s growth of 0.8%.
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Four Corners (FCPT) on Buying Spree, Acquires Illinois Asset
Four Corners Property Trust (FCPT - Free Report) recently acquired a portfolio of three properties in a strong retail corridor in Illinois for $11.5 million. The properties are leased to Aspen Dental, Addus Homecare, AT&T, WellNow and Banfield Pet Hospital. The move is in sync with the company’s portfolio-expansion efforts, with real estate leased to strong credit operators.
The tenants are corporate-operated under triple net leases with a weighted average of five years of term remaining. Priced at a 6.8% cap rate on rent as of the closing date and excluding transaction costs, the buyout seems a strategic fit for FCPT. The portfolio is likely to generate steady revenues over the long term.
Of late, this real estate investment trust (REIT), mainly engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties, has been on an acquisition spree.
In December, FCPT shelled out $6.9 million for the acquisition of a Red Lobster property and a Smokey Bones property positioned in a highly trafficked corridor in New York. The properties are corporate-operated under triple net leases with a weighted average of 2.5 years of the residual term. The transaction was priced at a 6.5% cap rate, excluding transaction costs.
In the same month, it closed the acquisition of a four-property Buffalo Wild Wings portfolio for $14.3 million. Being situated in strong retail corridors in Illinois, the properties are under individual long-term, triple net leases, each with roughly nine years of the residual term.
In addition to the above-mentioned buyouts, earlier in December, Four Corners acquired a WellNow Urgent Care property in Michigan for $2.4 million and five Jiffy Lube properties in Indiana for $7.9 million. Further, it took over a Gerber Collision & Glass property in Texas for $2.8 million.
Notably, in the nine months that ended Sep 30, 2022, FCPT acquired 70 properties for $171.8 million, including transaction costs. These properties are 100% occupied under net leases with a weighted average remaining lease term of 7.5 years.
Further, as part of its capital-recycling efforts, FCPT announced the disposition of a Red Lobster property in Ohio for $4.9 million in December. The company plans to redeploy the proceeds into new investment prospects in sync with its thresholds.
Four Corners currently carries a Zacks Rank #4 (Sell).
However, analysts seem bullish on the company as the Zacks Consensus Estimate for its 2022 funds from operations (FFO) has moved marginally upward over the past week. Its shares have gained 7% in the quarter-to-date period, outperforming the real estate market’s growth of 0.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the REIT sector are VICI Properties (VICI - Free Report) , Lamar Advertising (LAMR - Free Report) and Chatham Lodging Trust REIT (CLDT - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for VICI Properties’ current-year FFO per share is pegged at $1.92.
The Zacks Consensus Estimate for Lamar Advertising’s 2022 FFO per share is pegged at $7.34.
The Zacks Consensus Estimate for Chatham Lodging Trust’s ongoing year’s FFO per share is pegged at $1.17.
Note: Anything related to earnings presented in this write-up represent FFO — a widely used metric to gauge the performance of REITs.